Crisis at Boeing: after seven weeks of historic strike, workers accept a new agreement

The standoff between employees and management lasted more than seven weeks. After tough negotiations, striking Boeing workers accepted a new draft social agreement on Monday, November 4. A strike that cost the company and its suppliers more than ten billion dollars.

After rejecting two offers, IAM-District 751, branch of the machinists' union (IAM), indicated that it had approved by 59% the agreement providing for a salary increase very close to its demands, but not the restoration of the old retirement scheme.

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More than 33,000 employees in the Seattle region, in the northwest of the United States, will return to their assembly plants.

“The strike is going to end and it is now up to us to get back to work and start building the planes, raise prices and get this company back on the path to financial success,” said Jon Holden, president of IAM-District 751, during a press conference. “I am proud of our members,” he added. “They have accomplished a lot and we are ready to move forward.”

Salary revaluation

The project announced Thursday evening includes a salary increase of 38% spread over four years. The union demanded 40%. Many employees also hoped for the reestablishment of the guaranteed amount retirement pension system – 42% of current union members had one – which was abolished by a social agreement in 2014 in favor of a funded system.

The group also reinstated an annual bonus (4% of annual salary), increased the ratification bonus (from $3,000 to $12,000) and increased the contribution to the funded retirement plan.

It has maintained its commitment to manufacturing its next plane – expected by 2035 – in the Seattle region, birthplace of Boeing, which represents a guarantee of tens of thousands of jobs for several decades.

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Kelly Ortberg, boss of the group since August, said he was “happy” that an agreement had been reached.

“I think Boeing can do better. They can give us back our pension and do more in terms of work-life balance,” said Mike Corsetti, quality inspector for 13 years, on Friday. But for Boeing, this backpedaling is inconceivable because it is “excessively expensive”.

The costliest strike in Boeing history

“The past months have been difficult for all of us, but we are on the same team,” he said in a message to employees. He underlined “the importance of this moment for our history and for future generations”. “There is much work to be done to recapture the excellence that has made Boeing an iconic company.”

According to the Anderson Economic Group, this is the costliest strike of this century in the United States with more than $11.56 billion in direct impact since September 13, including $6.50 billion in shortfalls. to gain for Boeing and 2.87 billion for its suppliers.

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United States President Joe Biden “congratulated” the union and the firm “for reaching an agreement that reflects the hard work and sacrifices of the 33,000 machinists” and also mentioned the support of his economic team.

“Over the past four years, we have demonstrated that collective bargaining works. Good agreements benefit workers, businesses and consumers and are essential to growing the American economy,” he said. on the eve of the presidential election.